If you have to pay more than 2,000 euros in taxes, it is probably better to turn to tax exemption. Several schemes are compatible with real estate and you get a comfortable reduction each time. Of course, you have to comply with all the conditions, which are often laborious.
Is it still necessary to present the Pinel law ?
For several years, one of the schemes has been an unprecedented success, the Pinel law is therefore widely known by the French. It should be noted that you can enjoy a reduction of 63,000 euros if you choose a 12-year rental investment with a reduction of 21 %. Two other cases are possible:
- You have a reduction of 18 % for a 9 year rental period.
- The first tier is for a 6-year investment with a reduction of 12 %.
It remains one of the best solutions allowing you to reduce these expenses while preparing your future. In fact, the rental income is an interesting complement to your income, but you can also use it to pay back the bank if you have taken out a mortgage. Rental investment is also a very interesting guarantee for financial institutions, which lend money more easily.
What are the advantages of the Censi Bouvard law?
Depending on the configuration of your home and your plans, the Pinel law is not necessarily the most suitable. You can then opt for the Censi Bouvard scheme, which has certain strong points.
- VAT recovery is possible on the purchase price, the percentage is often 20 %.
- The tax reduction is 11 % for 9 years, the percentage is applied to the cost of the operation.
- The reduction can be carried forward for 6 years if the amount is greater than the tax.
- A flat-rate deduction of 50 % is proposed for the taxation of rental income under micro BIC.
Two statutes for your investment
You can be a professional furnished landlord (LMP) or a non-professional furnished landlord (LMNP). This means that you offer flats or houses with the bare minimum in terms of furnishings. The lessor generally obtains a number of advantages, including a specific arrangement for rental income for tax purposes. If you adopt the LMNP, the income generated is not taxed very much and the profitability is generally appreciable.
A clear difference must be listed compared to a tenancy described as bare, as the lease dedicated to furnished tenancy is a bit easier to enforce. It is important to point out that these are only two statutes and not devices. You must therefore couple it with a solution such as the Censi Bouvard law. This makes understanding tax exemption a little difficult, which is why it is a good idea to turn to a property professional. He or she will be able to advise you on all your choices and especially on the selection of the best scheme. They will even be able to offer you their experience in building your project by targeting the most suitable homes for these formalities.